a. Draw a graph of Brazil€™s PPF and explain how your graph illustrates scarcity.
b. If Brazil produces 40 barrels of ethanol a day, how much food must it produce to achieve production efficiency?
c. Why does Brazil face a tradeoff on its PPF?
Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. Suppose that Brazil€™s production possibilities for ethanol and food crops are as in the table.

Transcribed Image Text:

Ethanol (barrels per day 70 54 Food crops (tonnes per day) 0 and 40